Markets on February 17: Support at 2750

The indices traded lower after a gap down opening in Sensex. Nifty has come close to our short-term target of 2730-2750 and it would be int...

The indices traded lower after a gap down opening in Sensex. Nifty has come close to our short-term target of 2730-2750 and it would be interesting to see how it behaves. Nifty will whipsaw 2750 levels in order to find further direction, and closing below it could spell trouble for bulls; else expect the market to offer a bounce till 2850. The daily momentum though has signaled a sell today and the going remains tough, 2750 hence becomes more important for bulls.

On hourly charts, the index remains oversold and a bounce till 2800 intra day will be interesting to watch, but failure to go past 2800 would signal further weakness. The levels to watch are 2785 and 2800 on upside. The advance-decline remains negative so is the bias with target at 2730 with a revised reversal at 2855.

Reliance continues to slip and should target Rs1,230-1,250 levels, Bharat Heavy Electricals Ltd looks weak and should target Rs1,330, moreover banking stocks looks set for a pull back after completing downside targets. State Bank of India should retest Rs1,130-1,140 levels once from hereon.